Mortgage Broker Insurance
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Insurance for Mortgage Brokers
Mortgage broker commercial insurance NZ
Mortgage broker insurance is a specially tailored insurance package, designed to protect mortgage brokers from various risks associated with their business. It covers different types of liabilities and eventualities that a mortgage broker might face in their professional life.
Why is mortgage brokers insurance important?
Imagine building a house without a strong foundation; it’s likely to collapse sooner or later. Similarly, operating as a mortgage broker without insurance is risky. Mortgage broker insurance acts as the strong foundation, ensuring that in the event of unforeseen challenges, the broker is protected from significant financial losses.
In New Zealand, the average cost of mortgage brokers insurance typically ranges between $150 – $300 per month.
It’s crucial to have mortgage broker coverage if your business:
- Deals with multiple clients
- Handles sensitive financial data
- Offers advisory or consultancy services
- Operates in a physical office space
What insurance covers are typically included in mortgage broker insurance?
Mortgage Broker Professional Indemnity
Mortgage broker indemnity coverage protects mortgage broking businesses from financial losses if they make mistakes or are accused of negligence while doing their job.
Best For
- Negligence claims
- Errors & Omissions
- Professional mistakes
Public Liability
This policy covers common mortgage broking business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.
Best For
- Business Accident Coverage
- Third-party Damages
- Legal Cost Protection
Statutory Liability
This cover is a type of protection that helps mortgage brokers cover costs if they accidentally break certain laws or regulations.
Best For
- Unintentional breaches protection
- Legal costs
- Fines and penalties
Mortgage Broker Car Insurance
Protects cars used for mortgage broking activities. It covers accidents, damages, and injuries related to the vehicle while it’s being used for business and personal activities.
Best For
- Repair costs
- Third party damages
- Injuries
Building Insurance
Building insurance in NZ is a type of coverage that helps pay for repairs or rebuilding if your building or commercial property gets damaged.
Best For
- Accidents
- Natural disasters
- Fires
Business Contents Insurance
Business contents insurance in NZ is for protecting all the important stuff inside a mortgage broking business. If there’s a problem or accident, the insurance can help with the expenses.
Best For
- Accidents
- Floods
- Fires
How much does mortgage broker insurance cost?
Mortgage broker insurance premiums are calculated on several different factors including:
- Types of cover
- Turnover
- Location
- Claims History
Mortgage broker insurance in NZ typically costs between $150 to $300 per month.
Who needs mortgage brokers insurance?
Any mortgage broker, whether operating as an individual or as a part of a larger entity, should consider this insurance. Whether you’re just starting out or have been in the industry for years, the risks remain, and it’s always better to be prepared.
While it’s not legally mandated, it’s highly recommended. Many financial institutions and clients prefer working with insured brokers as it adds an extra layer of trust and credibility.
Absolutely! Mortgage broker insurance is flexible. You can add or remove components to suit your specific business needs. This ensures you’re not paying for coverages you don’t need while also making sure you’re fully protected.
How do I get a mortgage broker insurance quote?
We understand the unique needs of mortgage brokers in New Zealand. Leveraging our extensive industry knowledge and partnerships, we provide comprehensive mortgage broker insurance quotes from the top insurers in the country and globally. Entrust us with your requirements, and we’ll ensure you receive the most competitive and tailored coverage options available.
To obtain a mortgage broker insurance quote we may require you to provide some fundamental details about your business, such as:
- The name of your business
- The total number of employees
- Predicted annual income
- Years of experience in the industry
How do I get proof of mortgage broker insurance?
You can usually get proof of mortgage broker insurance same day when you purchase insurance through Gerrards.
Acquiring a mortgage brokers insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or project.
To obtain insurance coverage promptly, contact one of our insurance brokers.
What does mortgage brokers insurance not cover?
General business risks
Every business has its ups and downs. Mortgage broker insurance won’t protect against standard business challenges, like a decline in customers due to economic changes or a new competitor in the market.
Breach of contract
If a disagreement arises because you failed to meet the terms of a contract with a client, mortgage broker insurance might not protect you. This is why clarity in contractual terms and ensuring you meet those promises is vital.
Claims from known issues
Transparency is vital. If you knew about a potential issue or risk and didn’t disclose it when purchasing the insurance, claims arising from that particular risk might be rejected. It’s always best to be upfront about any known concerns or previous issues.
Other common questions about mortgage broker insurance
Absolutely. Regardless of your working hours or location, as long as you’re operating as a mortgage broker, you can be covered.
Any significant change in business structure or ownership should be reported to Gerrards. Depending on the nature of the change, your policy may need to be updated.
A claim-made policy covers claims made during the policy period, even if the incident occurred before the policy was in effect. An occurrence policy covers incidents that happen during the policy period, regardless of when the claim is filed.
Immediately contact Gerrards to inform us of the situation. Our team will guide you on the next steps and documentation required. Prompt communication is crucial to ensuring the smoothest possible claims process.
